Jamie Dimon, chief executive officer of JPMorgan Chase & Co., said that the headcount at the largest US bank is expected to stay flat for the rest of the year after increasing by more than 8%.
The New York-based company reported that its total employee count increased to 296,877 in the first quarter from 273,948 a year earlier. According to JPMorgan, more headcount, greater compensation, and wage inflation contributed to a nearly 5% growth in non-interest expenses.
In a conference call with reporters on Friday after the bank released its quarterly results, Chief Financial Officer Jeremy Barnum referred to the increase in headcount as “BAU” — business as usual.
Due to inflation, a decline in deal activity, and the potential for a recession, Wall Street has leaned on headcount reductions and hiring freezes to help limit costs. While Citigroup Inc. has cut hundreds of jobs this year, Morgan Stanley cut 1,600 workers in December. In 2023, Goldman Sachs Group Inc. started one of its largest layoffs, eliminating around 3,200 workers.
On Friday, JPMorgan executives also discussed the bank’s decision to call its managing directors back to the office five days a week, eliminating the hybrid work pattern developed during the pandemic.
“We think leaders need to be accessible to their people all the time,” Dimon said. Many other employees are allowed to come in three days a week.
“We know some people weren’t following three days a week, and we want them to be there three days a week,” Dimon said. “We completely understand some people don’t want to do it. They can not do it elsewhere.”